What to Consider Before Filing For Bankruptcy

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Deciding to file for bankruptcy is not an easy decision to make. However, If you are struggling to pay bills every month and do not have enough to pay down your existing debt, filing for bankruptcy may be a wise decision. That does not mean you should go into the process unprepared. Before filing for bankruptcy, consider the following points.

Decide if it is The Right Decision for You

If you are being sued for debt or your salary is being garnished, you are a good candidate for this process. If your home is going into foreclosure, you should file as soon as possible. It will give you enough time to potentially catch up on late payments. However, you should also take your future prospects into consideration as well as your goals for the next decade or so.

There is More Than Just One Bankruptcy Filing

There are two types of bankruptcy filings you can choose. There is Chapter 7, which allows you to eliminate most of your debt completely and there is Chapter 13, which allows you to pay off those debts over three (3) to five (5) years. The former is ideal for someone who has high debt and does not have sufficient income to pay them off. The latter is ideal for you if you have enough money coming in to pay off your debt and if you just need a few more years to do so.

You Can Keep Assets

The good news is you can keep some assets – even when you file for bankruptcy. This includes personal property such as your furniture, clothes, appliance etc. You may even be able to retain larger assets (such as real estate or cars) depending on your financial health.

Some Debt Cannot Be Discharged

In some cases, bankruptcy cannot be seen as a cure-all for bad financial issues. If you owe back taxes or are behind in child support payments, you will still have to take care of them after filing. Student loans are also not discharged in bankruptcy.

If you are looking for a bankruptcy attorney in Elgin, IL, who can help you decide which options you should take, get in touch with the Jackson Abdalla Law Group today. We can help you get a fresh start and determine if filing for bankruptcy is the right decision for you or not.